Home Loan - Best Bank for Home Loan in India (August 2022)

Check out top home loan banks offering low interest & simple application process. Compare today’s home loan rates & avail the best housing loan. Read More!  

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Introduction 

Are you looking forward to purchasing your first place? Shopping for a home is exciting, exhausting, and a little terrifying, especially in this market. In the end, you want to end up with a home you adore at a price you can manage to pay. 

Arm yourself with the list mentioned below to compare and narrow down the choices to get the best for you. To lend a helping hand to our customers, we have consolidated all the necessary information regarding the current rate of interest on home loans with the best bank for home loans in India. 

Please keep visiting this section to check the latest interest rate for home loans. Check out the top home loan banks offering low interest and a simple application process. Compare today’s home loan rates & avail the best housing loan. Read More!

Our Top Picks

Best Overall Home Loan Bank - Kotak Mahindra  

Kotak 811 Digital Bank is one of Kotak Bank's most popular savings accounts. 811 is zero-balance savings account that you can open with your smartphone or laptop.

Best for Bad Credit - Axis Bank 

An Axis Bank Insta Easy Credit Card can be obtained on the basis of your salary or a fixed deposit. Cardholders can increase their credit score with this card due to its minimal documentation requirements.

Best for Quick Approval - ICICI Bank 

Personal loans from ICICI Bank are simple to obtain and completely hassle-free. You can now get a loan up to Rs. 15 lakhs with very little documentation.

Best for Low-Interest Rates - Union Bank of India

If you want to get a bank loan with the cheapest interest rate, then you must go to the Union Bank of India. They provide a minimum of 6.40 and a maximum of 7.0 interest rate to their lenders. 

Comparison of 10 Best Home Loan Banks in India 

Here is the list of the best home loan banks in India that provide the best interest rates and approve the loan as soon as possible:

S.No 

Bank Name

Interest Rate 

Processing Fees 

1

Union Bank of India 

6,40 to 7.0

0.50% of the loan amount. Maximum of Rs. 15,000

2

Kotak Mahindra Bank 

6.55 to 7.10. 

3

HDFC Bank 

6.70 to 7.40.

Up to 0.50% of the loan amount or Rs. 3,000/- whichever is higher.

4

ICICI Bank

6.70 to 7.40.

0.50% – 2% of the loan amount or

Rs. 1,500/- whichever is higher

5

LIC Housing Finance 

10.05% to 10.15%

Rs. 10,000 for loans up to 50 lakhs.

Rs. 15,000 for loans above Rs. 50 Lakhs

6

Canara Bank 

6.90 to 8.90

7

Axis Bank 

7.0 to 11.0

Higher of – 1% of the loan amount or Rs. 10,000

8

State Bank Of India 

7.0 to 7.55

0.35% of the loan amount

Minimum – Rs. 2,000 and Maximum – Rs. 10,000

9

PNB Housing finance

7.35 to 9.45.

1% of the loan amount. Minimum fees – Rs. 10,000

Upon approval, PNBHF retains all the loan fees.

Unless the loan is approved, PNBHF retains 3,000 rupees per property.

10

Indiabulls bank 

7,60 to onwards 

Up to 2% of the loan amount

Top 10 Home Loan Banks in India

We have given proper details of the best home loan banks in India. Below you can read the details of the top 10 banks for home loans along with pros and cons, eligibility, required documents, loan amount, and loan tenure. 

1. Union Bank of India 

Purchases of old and new residential properties, the purchase of plots and construction, as well as renovations, are all available through Union Bank loans with no top-ups. You can receive a house loan to finish a residential unit that is still under construction. The cost of purchasing a solar power panel at the same time as purchasing or building a house is also included in the home loan from Union Bank.

  • Eligibility - 18 to 65 years 
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - 30 lakhs to 2 crore 
  • Loan Tenure - 30 years 

Pros 

Cons 

Home loans with fixed and floating rates are available.

They can not have the availability of top-up loans.

It has the lowest, 6.8% home loan interest. 

A fixed-rate loan can last a maximum of five years.

2. Kotak Mahindra Bank 

The Uday Kotak-led banks have over 100 branches across India and are fast-growing private lenders. Kotak Mahindra is now giving the lowest interest rate on house loans in the industry.

  • Eligibility - 18 to 65 years
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P And L statement 
  • Loan Amount - 50,000 to 25,00,00 lakhs
  • Loan Tenure - 20 years

Pros 

Cons 

For people with unpredictable income, an overdraft option is a particularly effective means of repaying house loans.

The overdraft facility is not eligible for the section 80C tax deduction.

Borrowers have the ability to use an overdraft amount from their loan account.

Savings have a greater chance of earning higher returns. As a result, taking out an overdraft on a house loan entails forgoing savings in order to pay off the loan sooner, which isn't always the best financial decision.

For people with unpredictable income, an overdraft option is a particularly effective means of repaying house loans.

 

3. HDFC Bank 

HDFC is well-known for conducting thorough property document verification. You can have a door-to-door consultation with an HDFC loan expert or apply online and upload your documents. The interest rates on HDFC home loans are competitive, and you may use them to buy a house, buy a plot of land, build a house, improve your home, or extend your property.

  • Eligibility - 18 to 70 years
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount-Rs 10 Crore
  • Loan Tenure - up to 30 years 

Pros 

Cons 

Very transparent charges. 

For a loan reappraisal, HDFC charges up to RS. 2,000. 

There are multiple options to choose from for home loan repayment. 

 

4. ICICI Bank

ICICI is known for its easy-to-understand documentation, quick approvals, and low-interest rates. There are loans available for home purchase, construction, and renovation, as well as top-up home loans. Interest is computed on a monthly declining balance, which means the principle is determined at the end of each month, and interest is calculated accordingly. If you make a partial payment today, the interest on your loan will be reduced beginning on the 1st of the following month.

  • Eligibility - 21 to 70 years
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - Rs. 5 crores
  • Loan Tenure - 30 years 

Pros 

Cons 

Women can co-borrow with non-working female partners and get lower interest rates.

If your EMI has already been raised, it can't be lowered even if you have made enough part payments.

You can easily get a home loan from this bank. 

 

They also provide a doorstep service free of charge. 

 

5. LIC Housing Finance 

LIC Housing Finance offers mortgage loans for home purchases, construction, repairs, plot purchases, home extensions, and renovations. Under some circumstances, top-up loans are also possible. You have the option of taking out a fixed or variable rate loan with a term of up to 30 years. The interest is computed on a monthly basis with a decreasing rate of interest. 

  • Eligibility - 21 to 7o years 
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - one lakh onward.
  • Loan Tenure - up to 30 years

 

 

Pros 

Cons 

This bank has lower and floating interest rates.

The process of loan approval is slow.

With this bank, you do not need to pay for prepayment. 

 

 

6. Canara Bank 

The Canara Bank was established in Mangalore, Karnataka, in July 1906 and was nationalized in 1969. The headquarters of this over-a-century-old bank are in Bengaluru, and it has over 10,391 branches across India. After merging with Syndicate Bank last year, Canara Bank became the fourth-largest state-owned bank by assets, with a business size of over Rs 16 trillion.

  • Eligibility - 21 to 55 years
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - up to 10 crores
  • Loan Tenure - up to 30 years

Pros 

Cons 

It is more than 100 years old, and it is a trustworthy bank.

There are disadvantages to a higher mortgage size, including having to put up to 25% of the property's value as a down payment.

You could repay your loan up to the age of 75.

Canara Bank's home loans are also subject to a processing fee like most other banks.

7. Axis Bank 

Axis Bank offers home loans for as little as Rs. 3 lakhs. The purchase of built-in houses, the construction of a house, and top-up loans qualify. Axis Bank provides floating and fixed interest rate home loans with terms ranging from 10 to 30 years.

  • Eligibility - age 21 to 60 years 
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - up to 3 crores
  • Loan Tenure - 30 years max

Pros 

Cons 

Axis Bank offers the loans at the smallest amount of Rs. 3 lakhs.

Charges for issuing statements, repricing, issuing document photocopies, retrieving documents, issuing interest certificates, and so on.


 

This bank has both floating and fixed rates for home loans in India. 

 

8. State Bank Of India 

At SBI, one of the most stringent property verification procedures is used. The advantage is that you are assured that the property papers are genuine, and you are unlikely to face any legal issues in the future. Home loan products include construction, remodeling, and top-up loans. 

SBI exclusively provides floating-rate and SBI-Maxgain loans. SBI home loan interest is cheaper as compared to others. Each day, the principal is recalculated along with the claim, and interest is calculated accordingly. A partial payment today will lower the interest expense the next day. 

  • Eligibility - age 18 to 70 years
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - decided by lenders 
  • Loan Tenure - up to 30 years 

Pros 

Cons 

The property was subjected to a thorough examination. 

This bank has a slow process for approving home loans. 

Transparent charges. 

 

Interest in the daily-reducing balance is calculated. 

 

9. PNB Housing finance

PNB Housing Finance offers a variety of home loan products, such as home purchase loans, home construction loans, home extension loans, residential plot loans, and home improvement loans.

  • Eligibility - 18 to 60 years 
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - up to 35 lakhs
  • Loan Tenure - 30 years 

Pros 

Cons 

If you take out a loan to build a house, you can ask for an increase in the loan amount if the cost of the building rises.

It has slow processing in the application form. 

10. Indiabulls Bank

Indiabulls provides loans for the purchase, building, expansion, and restoration of homes. Indiabulls charges a 2% processing fee, which is on the upper end of the spectrum. There are no further additions, though. The interest is calculated on a reducing balance basis every month.

It provides a ‘fixed and floating rate loan, a dual-rate loan with a fixed interest rate for the first two years of the loan. They are one of the most popular lenders for those looking to purchase a home with insufficient documents or an ambiguous inheritance trail.

  • Eligibility - age 21 to 65 years 
  • Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement 
  • Loan Amount - up to 15 crore
  • Loan Tenure - up to 30 years
  • Loan disbursal time - 2 to 3 days

Pros 

Cons 

People who don't have time for loan formalities or branch visits can use eHome loan products. 

Application processing is slow, and customer service is lacking. 

The funds will cover 90% of the cost of the property worth less than Rs 30 lakhs. 

There is a database admin fee of Rs. 650.

Frequently Asked Questions

Here are some questions that come to an individual's mind before applying for a home loan. After deep research, we will try our best to provide you with accurate answers to your questions. 

1. Which is the best bank to get a housing loan from?

SBI Home Loan is number one. SBI can finance up to 90% of a property's cost for up to 30 years at a rate of 7.05 percent per year on average. Defense personnel, government employees, non-salaried people, candidates purchasing "green" homes, and those living in hilly/tribal areas are all eligible for special home loan packages offered by the bank.

2. Which bank gives the cheapest home loan?

If you want a home loan at the cheapest interest rate, then you must go to the Union Bank of India or the Kotak Mahindra Bank. 

3. How to check home loan eligibility?

The Pradhan Mantri Awas Yojana plan was created by the Central Government through the Ministry of Housing and Urban Poverty Alleviation, and it allows recipients to get subsidies on their house loans. According to the PMAY scheme's rules and regulations, candidates would be divided into four groups: EWS, LIG, MIG 1, and MIG 2. The yearly family income determines the PMAY eligibility requirements for these categories.

4. How to apply for a home loan?

A home loan product is best chosen after considering loans offered by banks and lending institutions. 

  • When comparing banks, take into account the interest rate, loan-to-value ratio, processing fees, and loan tenure. 
  • Calculate your EMI using an EMI calculator. 
  • Use this method to compare monthly payments across different mortgage companies. 
  • Additionally, some lenders offer home loan offers with reduced interest rates from time to time. 
  • Keep a close eye on that as you search for a loan. 
  • Make sure you know your loan requirements beforehand. 

Conclusion

Now that you have learned about the top home loan lenders and some helpful hints for selecting a bank, keep in mind that not every loan program is accurate for each individual. Every person or bank has different criteria, so you have to analyze them deeply before applying for a home loan in India. 

You should select a home loan that is appropriate for you based on your loan requirements, repayment ability, and cash flow. The expenses that will be paid by the loan should be stated explicitly by your lender. Registration and stamp duty payments, annual maintenance charges, and clubhouse fees are typically not financed by lenders. As a result, it's critical to find a lender that will finance the amount you require while also offering simple loan approval and repayment alternatives

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